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Business Memo Comparing 3 Automakers Essay

1730 words - 7 pages

November 24, 2008To: Professor Name Goes HereFrom:Student Name Goes HereSubject:Comparison of Honda, GM, and BMWAs you requested, I've investigated Honda, GM, and BMW. GM has the best outlook in the current volatile economy followed by Honda. BMW may be overpriced for consumers in the current economy, especially with high fuel prices.History and Pricing of Honda, General Motors, and BMWHonda Motor Company was established in 1948 as a motorcycle company in Japan. Honda then expanded motorcycle sales to the United States in 1959. In 1979, Honda opened its first automobile plant in the United States and then started manufacturing passenger cars in the United States in 1982 (Honda in America Operations, 2008). Honda currently offers 1 Civic hybrid at $23,550, 1 Civic GX natural gas vehicle at $25,090, and 1 FCX Clarity hydrogen fuel cell vehicle offered on a $600 a month lease only in California (Hybrid and Alternative Fuel Vehicles 2008).General Motors (GM) was founded in 1908 in Flint, Michigan as a holding company for Buck. Until 1916, GM, acquired Oldsmobile, Cadillac, Cartercar, Elmore, Ewing, and Oakland. In 1916, GM built its first car, the Chevrolet 490 (History, 2008). GM is one of United State's top 3 automakers and currently offers eight fuel efficient models ranging between $12,625 to $26,225 (Chevy Vehicles by Category, 2008). GM is also working on the Volt, an electric car set to launch in 2010 for $30,000 (Electric, 2008).Bayerische Motoren Werke (BMW) was founded in 1916 in Germany. BMW initially started as a company producing aircraft engines which was ceased after World War I due to the Versailles Armistice Treaty. BMW then started producing motorcycles in 1923 and automobiles in 1928. BMW is also the parent company of Mini Cooper and Rolls Royce (BMW History: Introduction. 2008). Currently, BMW has 100 Hydrogen 7 test cars which are being tested and improvised. The Hydrogen 7 is only offered on lease in California with a price tag of over $100,000. BMW also offers 22 models which leave a very small carbon footprint of 140 g/km. BMW strives towards fuel and emission efficiency for an eco friendly future (BMW CO2 Model Finder. 2008).A strong advantage for automakers is experience. The global economy is subject to frequent fluctuations in demand due to a numerous factors including the price of crude oil, the price of raw materials, and interest rates. General Motors is the strongest of the three automakers with its long history and wide variety of automobiles under numerous names. GM's main advantage is the lineup of models starting at $12, 625 which is almost half the price of what Honda has to offer. However, Honda is quickly gaining ground in the automobile industry by offering fuel efficient vehicles at an affordable price. BMW is at a disadvantage even though it offers 22 models due to its high price and high maintenance costs.Corporate CultureHonda operates under "Respect for the Individual," and "the Three Joys" which is the...

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